What is a Budget?

Suppose your pocket money is 10 rs per day. I am sure you plan how you are going to spend the money. Maybe 5 rs goes for Samosa and another 5 rs for the rickshaw ride home after school.

When your parents get their salary or money, they also plan how to spend it. Some money goes towards your school fees, the rent, food bill, house stuff, etc.

The country has to do the same thing! It has to PLAN how it will spend money over the coming year. Just like a house, a country also has a lot of things that need attention – defence, agriculture, industry, education, and so on.